The Annual Energy Outlook 2007 (AEO) reference case and alternative cases generally assume compliance with current laws and regulations affecting the energy sector. Some provisions of the U.S. Tax Code are scheduled to expire, or may be subject to adjustment, before the end of the projection period. In general, scheduled expirations and adjustments provided in legislation or regulations are assumed to occur, unless there is significant historical evidence to support an alternative assumption. This section examines the AEO2007 treatment of three provisions that could have significant impacts on U.S. energy markets: the gasoline excise tax, biofuel (ethanol and biodiesel) taxcredits, and the production taxcredit for electricity generation from certain renewable resources.

Provides a review and update of the handling of federal fuels taxes and taxcredits, focusing primarily on areas for which regulations have changed or the handling of taxes or credits has been updated in Annual Energy Outlook 2009.

There is a $3 per barrel taxcredit, which is tied to crude oil prices, in the Windfall Profits Tax (WPT) for producing fuels from certain unconventional sources. Concentrating on the tight gas formations section of qualifying fuels, the author examines the taxcredit and certain factors natural gas producers may want to consider in deciding on whether to choose the taxcredit or the incentive prices of the Natural Gas Policy Act. The decline in oil prices is significant enough to provide some producers an opportunity to take advantage of the taxcredit. They should do some tax planning by calculating the estimated break-even point for NGPA incentive prices and the nonconventional gas production taxcredit.

The Annual Energy Outlook 2008 (AEO) reference case incorporates current regulations that pertain to the energy industry. This section describes the handling of federal taxes and taxcredits in AEO2008, focusing primarily on areas where regulations have changed or the handling of taxes or taxcredits has been updated.

Tax incentives have been an important factor in the growth of renewable generation over the past decade, and they could continue to be important in the future. The Energy Tax Act of 1978 (Public Law 95-618) established ITCs for wind, and EPACT92 established the Renewable Electricity Production Credit (more commonly called the PTC) as an incentive to promote certain kinds of renewable generation beyond wind on the basis of production levels. Specifically, the PTC provided an inflation-adjusted taxcredit of 1.5 cents per kilowatthour for generation sold from qualifying facilities during the first 10 years of operation. The credit was available initially to wind plants and facilities that used closed-loop biomass fuels and were placed in service after passage of the Act and before June 1999.

The direct and indirect impacts of extension or termination of the New Mexico and federal residential solar energy taxcredits were assessed. The potential markets and future market penetration of active and passive residential solar energy systems were projected for the alternative possible federal and state taxcredit scenarios. The analysis indicates that sales will decline even with extension of the taxcredits, and that the termination of either or both credits will result in major decline in active system sales and a smaller decline in passive system sales.

Described are the methodology and results of an analysis to determine the eligibility of an energy-efficient item for the residential energy-taxcredit. Although energy credits are granted only on a national basis, an attempt to determine the tax-credit eligibility for an item such as the heat-pump water heater (HPWH) analyzing national data is inappropriate. The tax-credit eligibility of the HPWH is evaluated for the ten federal regions to take into consideration the regional differences of: (1) HPWH annual efficiency, (2) existing water heater stocks by fuel type, (3) electricity, fuel oil, and natural-gas price variations, and (4) electric-utility oil and gas use for electricity generation. A computer model of consumer choice of HPWH selection as well as a computer code evaluating the economics of tax-credit eligibility on a regional basis were developed as analytical tools for this study. The analysis in this report demonstrates that the HPWH meets an important criteria for eligibility by the Treasury Department for an energy taxcredit (nationally, the estimated dollar value of savings of oil and gas over the lifetime of those HPWH's sold during 1981 to 1985 due to the taxcredit exceeds the revenue loss to the treasury). A natural-gas price-deregulation scenario is one of two fuel scenarios that are evaluated using the equipment choice and tax-credit models. These two cases show the amounts of oil and gas saved by additional HPWH units sold (due to the taxcredit during 1981 to 1985 (range from 13.9 to 23.1 million barrels of oil equivalent over the lifetime of the equipment.

Requestor: Ms. Janice Mays, Chief Counsel, Committee on Ways & Means, U.S. House of Representatives This is a letter response requesting analysis of alternative extensions of the existing production taxcredit (PTC) that would apply to wind generators only.

This thesis examines how non-profit owners in Massachusetts have maintained affordability and ownership of Low-Income Housing TaxCredit (LIHTC) properties after the initial fifteen-year compliance period, at the lowest ...

In the late 1970s and early 1980s, environmental and energy security concerns were addressed at the federal level by several key pieces of energy legislation. Among them, the Public Utility Regulatory Policies Act of 1978 (PURPA), P.L. 95-617, required regulated power utilities to purchase alternative electricity generation from qualified generating facilities, including small-scale renewable generators; and the Investment TaxCredit (ITC), P.L. 95-618, part of the Energy Tax Act of 1978, provided a 10% federal taxcredit on new investment in capital-intensive wind and solar generation technologies.

. Â­ Extending the current ethanol taxcredit and tariff would boost corn-based fuel production -- and corn for corn as an ethanol fuel source would expand corn acreage by 1.7 million acres, said Seth Meyer, MU for blended fuel at the pump. "At the same time, blenders can pay more to ethanol plants that in turn pay

Fact sheet provides a brief overview of New Markets TaxCredits (NMTCs), a third-party financing incentive for solar installations in the public sector. NMTCs are intended to encourage economic activity in low-income and disadvantaged neighborhoods. The use of NMTCs in an innovative solar project transaction by the City of Denver, Colorado, is highlighted.

This CESA - LBNL Case Study examines how much economic value do new and expanded federal taxcredits really provide to PV system purchasers, and what implications might they hold for state/utility PV grant programs. The report begins with a discussion of the taxability of PV grants and their interaction with federal credits, as this issue significantly affects the analysis that follows. We then calculate the incremental value of EPAct's new and expanded credits for PV systems of different sizes, and owned by different types of entities. The report concludes with a discussion of potential implications for purchasers of PV systems, as well as for administrators of state/utility PV programs. The market for grid-connected photovoltaics (PV) in the US has grown dramatically in recent years, driven in large part by PV grant or 'buy-down' programs in California, New Jersey, and many other states. The recent announcement of a new 11-year, $3.2 billion PV program in California suggests that state policy will continue to drive even faster growth over the next decade. Federal policy has also played a role, primarily by providing commercial PV systems access to tax benefits, including accelerated depreciation (5-year MACRS schedule) and a business energy investment taxcredit (ITC). Since the signing of the Energy Policy Act of 2005 (EPAct) on August 8, the federal government has begun to play a much more significant role in supporting both commercial and residential PV systems. Specifically, EPAct increased the federal ITC for commercial PV systems from 10% to 30% of system costs, and also created a new 30% ITC (capped at $2000) for residential solar systems. Both changes went into effect on January 1, 2006, for an initial period of two years, and in late 2006 were extended for an additional year. Unless extended further, the new residential ITC will expire, and the 30% commercial ITC will revert back to 10%, on January 1, 2009. How much economic value do these new and expanded federal taxcredits really provide to PV system purchasers? And what implications might they hold for state/utility PV grant programs? Using a generic (i.e., non-state-specific) cash flow model, this report explores these questions.1 We begin with a discussion of the taxability of PV grants and their interaction with federal credits, as this issue significantly affects the analysis that follows. We then calculate the incremental value of EPAct's new and expanded credits for PV systems of different sizes, and owned by different types of entities. We conclude with a discussion of potential implications for purchasers of PV systems, as well as for administrators of state/utility PV programs.

BACKGROUND: Biodiesel is a diesel fuel alternative that has shown potential of becoming a commercially accepted part of the United States ’ energy infrastructure. In November 2004, the signing of the Jobs Creation Bill HR 4520 marked an important turning point for the future production of biodiesel in the United States because it offers a federal excise taxcredit. By the end of 2005, industry production was 75 million gallons, a 300 % increase in 1 year. Current industry capacity, however, stands at just over 300 million gallons/year, and current expansion and new plant construction could double the industry’s capacity within a few years. Biodiesel exhaust emission has been extensively characterized under field and laboratory conditions, but there have been limited cytotoxicity and mutagenicity studies on the effects of biodiesel exhaust in biologic systems. OBJECTIVES: We reviewed pertinent medical literature and addressed recommendations on testing specific research needs in the field of biodiesel toxicity. DISCUSSION: Employment of biodiesel fuel is favorably viewed, and there are suggestions that its exhaust emissions are less likely to present any risk to human health relative to petroleum diesel emissions. CONCLUSION: The speculative nature of a reduction in health effects based on chemical composition of biodiesel exhaust needs to be followed up with investigations in biologic systems. KEY WORDS: air pollution, biodiesel, diesel exhaust, diesel fuels, lung diseases, vehicle emissions. Environ Health Perspect 115:496–499 (2007). doi:10.1289/ehp.9631 available via

The market for grid-connected photovoltaics (PV) in the US has grown dramatically in recent years, driven in large part by PV grant or ''buy-down'' programs in California, New Jersey, and many other states. The recent announcement of a new 11-year, $3.2 billion PV program in California suggests that state policy will continue to drive even faster growth over the next decade. Federal policy has also played a role, primarily by providing commercial PV systems access to tax benefits, including accelerated depreciation (5-year MACRS schedule) and a business energy investment taxcredit (ITC). With the signing of the Energy Policy Act of 2005 (EPAct) on August 8, the federal government is poised to play a much more significant future role in supporting both commercial and residential PV systems. Specifically, EPAct increased the federal ITC for commercial PV systems from 10% to 30% of system costs, and also created a new 30% ITC (capped at $2000) for residential solar systems. Both changes went into effect on January 1, 2006, and--absent an extension (for which the solar industry has already begun lobbying)--will last for a period of two years: the new residential ITC will expire, and the 30% commercial ITC will revert back to 10%, on January 1, 2008. How much economic value do these new and expanded federal taxcredits really provide to PV system purchasers? And what implications might they hold for state/utility PV grant programs? Using a generic (i.e., non-state-specific) cash flow model, this report explores these questions. We begin with a discussion of the taxability of PV grants and their interaction with federal credits, as this issue significantly affects the analysis that follows. We then calculate the incremental value of EPAct's new and expanded credits for PV systems of different sizes, and owned by different types of entities. We conclude with a discussion of potential implications for purchasers of PV systems, as well as for administrators of state/utility PV programs.

Federal taxcredits for production of natural gas from unconventional resources can stimulate drilling and reserves additions at a relatively low cost to the Treasury. This report presents the results of an analysis of the effects of a proposed extension of the Section 29 alternative fuels production credit specifically for unconventional gas. ICF Resources estimated the net effect of the extension of the credit (the difference between development activity expected with the extension of the credit and that expected if the credit expires in December 1990 as scheduled). The analysis addressed the effect of taxcredits on project economics and capital formation, drilling and reserve additions, production, impact on the US and regional economies, and the net public sector costs and incremental revenues. The analysis was based on explicit modeling of the three dominant unconventional gas resources: Tight sands, coalbed methane, and Devonian shales. It incorporated the most current data on resource size, typical well recoveries and economics, and anticipated activity of the major producers. Each resource was further disaggregated for analysis based on distinct resource characteristics, development practices, regional economics, and historical development patterns.

The New Markets TaxCredit (NMTC) Program is designed to promote investment and economic growth in urban and rural low-income communities across the country. Created in 2000 as one of the last acts of the Clinton Administration, ...

Present federal tax incentives apply to certain types of biomass-derived diesel fuels, which in energy policy and tax laws are described either as renewable diesel or biodiesel. To understand the distinctions between these diesel types it is necessary to understand the technologies used to produce them and the properties of the resulting products. This fact sheet contains definitions of renewable and biodiesel and discusses the processes used to convert biomass to diesel fuel and the properties of biodiesel and renewable diesel fuels.

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publication 442-880 There are broad and increasing interests across the nation in using domestic, renewable bioenergy. Virginia farmers and transportation fleets use considerable amounts of diesel fuel in their operations. Biodiesel is an excellent alternative fuel for the diesel engines. Biodiesel can be produced from crops commonly grown in Virginia, such as soybean and canola, and has almost the same performance as petrodiesel. The purpose of this publication is to introduce the basics of biodiesel fuel and address some myths and answer some questions about biodiesel fuel before farmers and fleet owners use this type of fuel. ASTM standard for biodiesel (ASTM D6751) Biodiesel fuel, hereafter referred to as simply biodiesel,

This fact sheet provides a brief introduction to biodiesel, including a discussion of biodiesel blends, which blends are best for which vehicles, where to buy biodiesel, how biodiesel compares to diesel fuel in terms of performance, how biodiesel performs in cold weather, whether biodiesel use will plug vehicle filters, how long-term biodiesel use may affect engines, biodiesel fuel standards, and whether biodiesel burns cleaner than diesel fuel. The fact sheet also dismisses the use of vegetable oil as a motor fuel.

Algae Biodiesel: A Path to Commercialization Algae Biodiesel: A Path to Commercialization Center conservation and biomonitoring Â· Algae biodiesel is largest CEHMM project #12;Project Overview: The Missing Piece of the Biodiesel Puzzle Project Overview: The Missing Piece of the Biodiesel Puzzle Â· Began

Mining companies are using biodiesel in their equipment to help clear the air of diesel particulate matter (DPM). This action improves air quality and protects miners' lungs. Though using biodiesel has some challenges in cold weather, tax incentives, and health benefits make it a viable option.

Biodiesel Buccaneers Brodie Burke Sara #12;Questions of the hour Can we make biodiesel at a cheaper cost than buying biodiesel/petroleum diesel at the pump in Olympia? How does methanol compare to ethanol and does it affect the cost and efficiency of biodiesel? http://www.mpgmagazine.com/biodiesel

Biodiesel Safety and Best Management Practices for Small-Scale Noncommercial Use and Production you produce biodiesel: Â· Chemical-resistantgloves(butylrubberisbestfor methanol and lye........................................................................... 1 FuelOptionsfromBiomassOilFeedstocks ......................... 1 UsingBiodiesel

of directly purchasing a 300 kW fuel cell for a combined heat and power (CHP) system with (2) the cost of pur service contracts to include the Energy Investment TaxCredit. Introduction The Energy Investment TaxCredit (ITC)1 can help reduce the cost of installing a fuel cell system. While Department of Treasury

Worldwide biodiesel production has grown dramatically over the last several years. Biodiesel standards vary across countries and regions, and there is a call for harmonization. For harmonization to become a reality, standards have to be adapted to cover all feedstocks. Additionally, all feedstocks cannot meet all specifications, so harmonization will require standards to either tighten or relax. For harmonization to succeed, the biodiesel market must be expanded with the alignment of test methods and specification limits, not contracted.

Differences in Mexico's economic and tax systems make it important for foreign investors in oil and gas development to understand these protective policies and investment barriers. American investors, for example, should plan for technology-based opportunities. Among the tax opportunities described are those dealing with site selection, type of ownership, foreign taxcredits, income sourcing, and the use of a Domestic International Sales Corporation (DISC). (DCK)

Snohomish County in western Washington State began converting its vehicle fleet to use a blend of biodiesel and petroleum diesel in 2005. As prices for biodiesel rose due to increased demand for this cleaner-burning fuel, Snohomish County looked to its farmers to Ă?Â?Ă?Â˘Ă?Â?Ă?Â?Ă?Â?Ă?Â?growĂ?Â?Ă?Â˘Ă?Â?Ă?Â?Ă?Â?Ă?Âť this fuel locally. Suitable seed crops that can be crushed to extract oil for use as biodiesel feedstock include canola, mustard, and camelina. The residue, or mash, has high value as an animal feed. County farmers began with 52 acres of canola and mustard crops in 2006, increasing to 250 acres and 356 tons in 2008. In 2009, this number decreased to about 150 acres and 300 tons due to increased price for mustard seed.

This document is a guide for those who blend, distribute, and use biodiesel and biodiesel blends. It is intended to fleets and individual users, blenders, distributors, and those involved in related activities understand procedures for handling and using biodiesel.

for electricity produced and sold by a qualified facility for a 5- or 10-year period. o Currently 2.1 cent or 1Fuel Cell Tax Incentives: How Monetization Lowers the Government Outlay By: Lee J. Peterson, Esq.48-9(a)(1). 5R G Building Business Value February 19, 2009 #12;How Do TaxCredits Minimize Government

Modeling Generator Power Plant Portfolios and Pollution Taxes in Electric Power Supply Chain;Modeling Energy Taxes and Credits: The Genco's Choice · Each Genco has a portfolio of power plants · Each power plant can have different supply costs and transaction costs · Supply costs can reflect capital

The Costilla County Biodiesel Pilot Project has demonstrated the compatibility of biodiesel technology and economics on a local scale. The project has been committed to making homegrown biodiesel a viable form of community economic development. The project has benefited by reducing risks by building the facility gradually and avoiding large initial outlays of money for facilities and technologies. A primary advantage of this type of community-scale biodiesel production is that it allows for a relatively independent, local solution to fuel production. Successfully using locally sourced feedstocks and putting the fuel into local use emphasizes the feasibility of different business models under the biodiesel tent and that there is more than just a one size fits all template for successful biodiesel production.

Biodiesel: Cost and reactant comparison 1 Biodiesel: Cost and reactant comparison Burke Anderson-2008 Abstract: Alternative fuel resources such as biodiesel are important to combat fossil fuel use reduction. Biodiesel is made through a process of transesterification that can be preformed in a variety